The purpose of this assignment is to analyze a statement of cash flows to determine the financial strengths and weaknesses of a company.
Understanding a company’s major sources and uses of cash, and how cash is being used in the business through the analysis of the statement of cash flows, is essential. This analysis guides financial decision-making and is used to determine financial strengths and weaknesses within the company.
Include screenshots from the statement of cash flows as needed to illustrate key findings and information.
Discuss the company’s major sources of cash in each of the three sections of the statement of cash flows. Provide at least two major sources of cash for each section.
Discuss the company’s major uses of cash in each of the three sections of the statement of cash flows. Provide at least two major sources of cash for each section.
Discuss the major differences between the net income and the cash provided or used by operating activities, and explain the cause of the major difference between the two values. Note that you may need to reconcile the differences between net income reported and the subtotal of cash provided or used by “operating” activities. What were the reconciling items, how were these accounts adjusted, and why do we not just report “net income” without adjustments?
Summarize the financial strengths of the business and justify your analysis based on evidence in the statement of cash flows. Include discussion as to whether or not you anticipate the company will experience continued success and explain your answer. Only information from the statement of cash flow should be referenced. Note that this analysis will be more than just the amounts of either the cash provided or used. You may need to review the notes in the MD&A for additional information.
Summarize the financial weaknesses of the business and justify your analysis based on evidence in the statement of cash flows. Include discussion as to whether or not you anticipate the company will experience continued challenges in this area and explain your answer. Only information from the statement of cash flows should be referenced. Note that this analysis will be more than just the amounts of either the cash provided or used. You may need to review the notes in the MD&A for additional information.
While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.
